Third Party:
The most basic UK car insurance option. Third party car insurance is the minimum coverage that allows you to drive legally in the UK. Any damage you do to a ‘third party’ i.e. someone or something that is NOT YOU or YOUR CAR is covered. You have no cover for personal injury or damage to your vehicle. So if you damage your car, or if your car is stolen, and you only have Third party car insurance you will have to pay for the repairs / cost of replacing the car.

Third Party Fire and Theft:
As well as the most basic level of car insurance (above) Third Party Fire and Theft insures your car against fire and theft. This option is the most popular car insurance for new and young drivers.

Fully Comprehensive Car Insurance:
Comprehensive car insurance gives you full risk cover for your car. This means that you can claim for any damage caused to your car by any means, apart from exclusions found in the small print.

In addition to allowing you to claim for the damage caused to your car in an accident, with comprehensive car insurance cover, you can also claim for acts of vandalism, theft, or any other accidental damage to your car which does not involve a crash. Unless loaded, as new or young drivers, you will not be able to afford fully comprehensive car insurance.


As a new or young UK driver you know your insurance premium is going to be too high. The reason for this is simple- you're a bigger risk to insure than the average car driver.

  • Newly qualified UK drivers are more likely to have an accident during their first  year of driving than at any other time.
  • Per mile of driving, the risk of an accident involving injury or death is about seven times greater for 17-20 years old than for those aged 40 or over.
  • Drivers under 21 are involved in 15% of all accident deaths.
  • New drivers make up just 10% of licence holders, but are involved in 29% of accidents.

Use the following tips to keep your young driver car insurance premium low.

Take the Pass Plus
The pass plus examination is for new and young car drivers. It is an intensive training course that helps new drivers become a better drivers. Pass the pass plus and you will get a discount of up 35% on your car insurance. Taking the Pass Plus will cost around £100 but given the high cost of new driver car insurance you should save more than this on your car insurance premium. Ask your driving instructor for details.

Pay a higher excess
Insurers will insist on a minimum amount that you have to contribute to any insurance claim. The standard amount is £100. As new and young drivers if you volunteer a higher amount you could save on your car insurance premium.

Pay your premium in one go
It is often cheaper to pay your years car insurance in one lump sum rather than in monthly instalments, Most insurers charge interest of around 15% APR (some up to 30%) to allow you to pay your premium in monthly instalments.

Named drivers
Adding a named older driver to your car insurance policy, i.e. your parents, can save you 10% on your premium. Likewise, avoid having younger named drivers on your policy.

Beef up your car security. Thatcham approved car alarms are recognized by all insurers and most will discount your premium if you have these fitted. If you have a garage then use it. Your car is less likely to be stolen from your garage or from your drive than if it is parked in the street. Insurance companies will recognize this and offer reduced premiums.

Buy your car insurance policy online.
Most car insurance companies offer a discount if you buy online via their web site.

Be Born Female
Female car insurance is cheaper. Why? Because the average female is a safer driver than the average male. Result, cheaper car insurance for the ladies.

Shop around
According to the Association of British Insurers it is possible to save 35% on a car insurance premium by simply comparing several insurance companies against each other. As young drivers such a discount can be considerable. So get as many insurance quotes, online or otherwise, as you can. It will save you money.